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[ NNSquad ] Re: L.A. Times Biz Section/Lazarus: "We can't be neutral on net neutrality"

Vint Cerf wrote:
no i am not in favor of volume pricing; i am in favor of capacity (bit/second) pricing.

I think that, if you you're an operator doing ULL, and you have a fibre backhauling, then the vast majority of costs you incur in, is the ULL line rental which is not charged on bitrate but rather a fixed amount per pair. therefore, your costs are essentially fixed. will you limit the capacity to x Mbps while the access line could bear X Mbps ? one of your competitors will not and he will get the customers.

It seems to me that capacity pricing can work where costs are somewhat capacity related (e.g. where you don't have fibre backhauling, where you don't have mandatory ULL to the incumbent,...) but, otherwise I have the impression that you might end up having just one capacity class which is full capacity.

ciao, s.

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